Bridge

PRAN

Posted

May 2021

Sector

Manufacturing related to infrastructure

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GuarantCo provided PRAN Agro, part of PRAN-RFL Group, with a 100 percent credit guarantee for a BDT 2.1 billion (c. USD 25 million) on-shore bond with a seven year tenor.

Our portfolio - PRAN

Transaction benefits

GuarantCo provided PRAN Agro, part of PRAN-RFL Group, with a 100 percent guarantee of a BDT 2.1 billion (c. USD 25 million) on-shore bond with a seven year tenor to attract domestic institutional capital from Bangladesh and support PRAN Agro’s expansion plans.

 

GuarantCo led with and enabled a pioneering and transformational structure for the bond realising various firsts for the Bangladeshi market: the first blended finance structured bond of its kind; the first to be subscribed by an international insurance company and the country’s first directly issued digitised bond under Private Placement of Debt Securities Rules; no development finance institution has ever guaranteed a bond of this kind in Bangladesh

Development benefits

The proceeds from the bond guaranteed by GuarantCo will enable PRAN Agro’s expansion plans including land development, construction, storage facilities and processing machinery. The expansion is expected to result in over 20 percent increased sourcing from local farmers, contributing to rural income and food security which is critical during the COVID pandemic and high on the Government of Bangladesh’s agenda. In a period where many people have lost their jobs, additional investment into PRAN Agro will also provide much needed job security to both current and future employees.

 

In Bangladesh, one of the world’s fastest growing economies over the last decade, the agriculture sector is a key sector contributing to employment and share of GDP. A key part of PRAN Agro’s strategic plan is to meet increasing demand for processed agricultural products, both locally and overseas, and invest in both expanding its production lines and work force to grow the business in order to fuel economic growth in Bangladesh.